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Zoff Foods, an FMCG startup specialising in spices, has raised $2 Mn (₹18.5 Cr) in a pre-Series B funding round led by existing investor JM Financial via its India Growth Fund III. The round also saw participation from boAt’s cofounder Aman Gupta.
The D2C spice brand is planning to use the funds to strengthen its offline distribution in both general and modern trade, scale quick commerce presence and invest in brand building.
Besides, Zoff is also looking to expand its product portfolio across blended spices, whole spices, and allied food categories.
Founded in 2018 by Akash Agrawalla and Ashish Agrawal, Zoff manufactures and retails kitchen spices and other essential cooking ingredients. Its products include blended spices, masalas, dry fruits, seasonings, immunity boosters, as well as ready-to-use gravies and marinade mixes.
The Raipur-based startup has over 100 SKUs, including turmeric powder, black salt, white sesame, among others. It claims to use a “cool-grinding technology” for its spices at less than 60 degrees celsius, which retains aroma and freshness. The startup runs a fully-automated manufacturing unit and a 10K sq ft temperature-controlled warehouse in Raipur, where it is also headquartered.
Zoff has established distribution across quick commerce platforms like Zepto and Blinkit and ecommerce marketplaces including Amazon and Flipkart as well as physical presence in about 30,000 general trade retail stores.
Almost half its sales come from quick commerce, 20% from ecommerce and the remaining comes from offline distribution.
Zoff last raised $4.8 Mn from JM Financial in 2024 and had secured ₹1 Cr from BoAt’s Gupta in Shark Tank India in 2023.
In FY25, Zoff’s operating revenue increased 11% to ₹102.7 Cr from ₹92.6 Cr in FY24. However, its loss ballooned to ₹17 Cr in the fiscal from ₹20 Lakh in FY24. It is projected to reach ₹160 Cr in revenue in the ongoing fiscal year.
The spice market in India is crowded, with unorganised and legacy players like MDH and Everest ruling the roost. However, FMCG brands have been trying to break this strong hold by focussing on quick commerce first to gain brand visibility and market share in urban centres before moving to lower tier cities through offline trade.
Agritech startup DeHaat entered this space in 2024 with the launch of its consumer brand Honest Farms to sell pulses, rice and spices sourced through its B2B agri supply chain vertical. Similarly, Wingreens Farms started out as a D2C brand selling condiments, but has now secured over $60 Mn in funding and expanded its product portfolio to include spice mixes and protein shakes, among others, gaining visibility across general trade stores.
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